Fourth quarter earnings expectations would mean a first annual fall in profits in three years
Samsung expects its quarterly profits to fall by more than a third (37 per cent) year-on-year when it publishes the figures later this month.
Forecasts from the Korean electronics company said it expects an operating profit of 5.2 trillion won (£3.1 billion) for the three months ending December 31. The results beat analysts expectations of between 4.8-5 trillion won.
Samsung also said that it expects a year-on-year fall in sales of 12 per cent to 52 trillion won as it becomes under increasing pressure in the smartphone sector.
Samsung senior vice president Kim Hyun-joon said in October that the company was to “fundamentally reform” its smartphone portfolio. This would involve producing less handsets and an increased focus on the mid-to-low sector.
The fourth quarter results would mean a first fall in annual profits for three years at Samsung. At the current forecast, it is expected to post an operating profit of 24.9 trillion won (£14.9 billion).
According to the latest figures from analyst firm Strategy Analytics, Samsung’s global market share fell to 24.7 per cent in Q3 from 35 per cent a year ago. It shipped 79.2 million smartphones in the quarter, down from 88.4 million in the same three-month period 12 months ago.